GMM Pfaudler Limited has informed stock exchanges about receiving a penalty order from the Directorate General of Foreign Trade (DGFT) for export control non-compliance. The company disclosed this development under Regulation 30 of the SEBI Listing Regulations on February 18, 2026.

DGFT Order Details

The Joint Director General of Foreign Trade, Ministry of Commerce and Industry, Government of India, issued the order on February 16, 2026. The penalty stems from a voluntary application filed by GMM Pfaudler for regularization of inadvertent export control non-compliance pertaining to the period FY21-FY23.

Voluntary Disclosure and Regularization

The company proactively filed a voluntary application with the DGFT seeking regularization of the inadvertent export control violations. This self-disclosure approach demonstrates the company's commitment to regulatory compliance and transparency in addressing past oversights.

Financial and Operational Impact

GMM Pfaudler has explicitly stated that the penalty will have no material impact on the company's financials, operations, or other business activities. The company's assessment indicates that the ₹15 lakh penalty amount is not significant enough to affect its overall business performance or strategic operations.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has fulfilled its obligation to inform both BSE Limited (Scrip Code: 505255) and National Stock Exchange of India Limited (Symbol: GMMPFAUDLR) about this regulatory development.

The resolution of this matter through the DGFT's approval of the regularization application allows GMM Pfaudler to move forward with clear regulatory standing regarding its export control compliance for the specified period.

GMM Pfaudler Limited has submitted its investor presentation on the unaudited standalone and consolidated financial results for Q3 FY26 and nine months ended December 31, 2025, to stock exchanges under SEBI LODR Regulations. The company demonstrated resilient performance with strong order intake growth and expanding backlog despite challenging global business conditions.

Financial Performance Highlights

The company's consolidated financial performance for Q3 FY26 showed mixed results with revenue remaining flat quarter-over-quarter while achieving growth year-over-year.

Strong Order Intake and Backlog Performance

The company's order intake performance remained robust, demonstrating strong market demand for its specialized technologies and services across diverse sectors.

Operational Adjustments and Strategic Measures

The company implemented workforce reduction at Pfaudler GmbH in Waghäusel, Germany, as part of its global manufacturing footprint consolidation strategy. This adjustment resulted in provisions for severance payments and retirement benefits totaling ₹43.6 crores gross value. Additionally, provisions for new labor codes in GMM Pfaudler India amounting to ₹12.7 crores gross value were made.

Diversification Strategy and Market Positioning

The presentation highlighted the company's successful diversification progress, with nearly 50% of order intake now coming from non-traditional industries including chemicals and pharmaceuticals, compared to traditional sectors like oil & gas, petrochemicals, defense, and nuclear. This strategic shift enhances the company's resilience across market cycles.

Regulatory Compliance and Investor Engagement

The investor presentation was submitted to BSE Limited (Scrip Code: 505255) and National Stock Exchange of India Limited (Symbol: GMMPPFAUDLR) on February 6, 2026, signed by Company Secretary & Compliance Officer Mittal Mehta. The company operates 19 manufacturing locations across 4 continents with an extensive sales and service network, employing over 2,000 people globally.